Proceedings of the 2010 International Conference on Industrial Engineering and Operations Management Dhaka, Bangladesh, January 9 – 10, 2010
Management of Supply Chain in Petroleum Corporations in India
Surajit Roy LPG Operations, Indian Oil Corporation Ltd. Mumbai 400053, India R. S. Dhalla Microbiological Consultants Mumbai 400007, India Abstract
Supply chain initiatives have become a critical part of firms operations. Success is increasingly being dictated by how well a company can control its supply base and mitigate supply bottlenecks and liabilities. This paper used inductive and qualitative approaches to explore the salient factors that simultaneously enhance the “greening the ...view middle of the document...
al., 2009). Success is increasingly being dictated by how well a company can control its supply base and mitigate supply bottlenecks and liabilities. Such disruptions are a 6-figure to 7-figure expense for companies, with a handful of companies citing that the cost was more than $10 million according to recent reports (see Hendricks and Singhal 2005, as an example). Reengineering (or re-engineering) is the radical redesign of an organization's processes, especially its business processes. Rather than organizing a firm into functional specialties (like production, accounting, marketing, etc.) and looking at the tasks that each function performs, we should, according to the reengineering theory, be looking at complete processes from materials acquisition, to production, to marketing and distribution. The firm should be reengineered into a series of processes. The changes, and subsequent improvements, have been clearly identified by Hammer and Champy (1993) who have claimed originality and conveniently packaged the ideas into the concept of “business re-engineering”, which has subsequently been called business process re-engineering (BPR). The main proponents of re-engineering were Hammer and Champy (1993). In a series of books including Reengineering the Corporation, Reengineering Management, and The Agenda, they argue that far too much time is wasted passing-on tasks from one department to another. The Business processes pictured as a set of triangles as shown below. The model will be used to define the supplier and process inputs, your process, and the customer and associated outputs. The feedback loop from customers will also be used as shown in Figure 1.
Figure 1: Customer feedback loop Improving business processes is paramount for businesses to stay competitive in today's marketplace. Over the last 10 to 15 years companies have been forced to improve their business processes because we, as customers, are demanding better and better products and services. And if we do not receive what we want from one supplier, we have many others to choose from (hence the competitive issue for businesses). Many companies began business process improvement with a continuous improvement model. The proposed model will attempt to understand and measure the current process, and make performance improvements accordingly. Figure 2 below illustrates the basic steps. The research will begin by documenting what Oil Marketing Companies (OMC’s) do today, establish some way to measure the process based on what their customers want, do the process, measure the results, and then identify improvement opportunities based on the data collected. Then implement process improvements, and measure the performance of the new process. This loop repeats over and over again, and is called continuous process improvement and the proposed research will be following this line of action.
Figure 2: Basic steps in continuous improvement
Critical Issues in Managing the Supply Chain